NEW YORK (TheStreet) -- Shares of J.C. Penney Co. Inc. (JCP - Get Report) are higher by 4.66% to $11.11 in mid-afternoon trading on Thursday, as retail stocks get a boost from PVH Corp.'s (PVH - Get Report) 2014 second quarter profit results of $1.51 per share, an increase from the $1.39 per share reported for the prior year's second quarter.
The consensus estimate was for earnings of $1.42 per share.
The apparel company that sells products under several different brand names including: Calvin Klein, Tommy Hilfiger, Van Heusen, and IZOD, said revenue for the most recent quarter grew by 4% to $1.98 billion from the 2013 second quarter.
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- The debt-to-equity ratio is very high at 2.09 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- JCP has underperformed the S&P 500 Index, declining 14.97% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Multiline Retail industry and the overall market, PENNEY (J C) CO's return on equity significantly trails that of both the industry average and the S&P 500.
- PENNEY (J C) CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PENNEY (J C) CO reported poor results of -$6.07 versus -$4.49 in the prior year. This year, the market expects an improvement in earnings (-$2.47 versus -$6.07).
- 36.01% is the gross profit margin for PENNEY (J C) CO which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -6.14% trails the industry average.
- You can view the full analysis from the report here: JCP Ratings Report